House Passes Legislation to Prevent Federal Student Financial Aid Theft

The “No Aid for Ghost Students Act“ seeks to codify fraud detection measures already implemented by the Education Department.

The U.S. House of Representatives recently passed legislation, introduced by Representative Burgess Owens of Utah, to prevent the theft of federal student financial aid disbursements. The No Aid for Ghost Students Act would require the Department of Education to screen Free Application for Student Aid (FAFSA) applicants to identify potential fraud, a move the department began implementing earlier this spring.

Congressman Owens said, “The No Aid for Ghost Students Act makes those protections permanent, helping ensure that federal student aid goes to real students working to further their education — not scammers gaming the system.”

The Education Department has been increasing its efforts to detect fraud since 2025. State audits have revealed that millions in federal aid have been stolen by fraudsters enrolling in colleges using false or stolen identities. The educational institutions are required to repay the federal government for the loss that results from successful fraudulent attempts.

The issue of ghost students enrolling in classes has prevented real students from taking required courses, leaving them on waitlists.

As the Lord Leads, Pray with Us…

  • For members of the Senate as they consider the legislation to codify the Education Department’s fraud detection efforts.
  • For Secretary McMahon and Education Department officials as they work to ensure FAFSA disbursements are provided to actual students.

Sources: Higher Ed Dive, Townhall, MSN, Deseret News

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